1. Organizational Change

2. Age of Hypercompetition External forces creating change
Globalization of Capitalist system
Technology
Increasing government regulations social pressure on businesses (In large part to deal with those businesses that fail to act responsibly; and in part sought by industry to level competition or restrict competition)
Demographic changes (domestically)

3. All of this leads to Change
Rate of change in order to survive is increasing. Management/leadership is needed to stimulate needed changes.

4. Typically Supervisory Responsibility to facilitate Change

5. Change Management Becomes central issue
Often top down. Examples Workforce reduction. Offer new product lines.
Reorganization
New accounting procedures
New MIS system.
New positions.
Diversity initiative

6. Your job
Get your subordinates to comply with expectations. Takes communication, leadership, power, individual differences, motivation, conflict, group demands to be able to make an effective change. There is simply nothing harder to do.

7. Target Elements of Change Organizing Arrangements
19-6
Figure 19-3
A Systems Model of Change
Target Elements of Change
Organizing Arrangements
Inputs
Outputs
Internal
Strengths
Weaknesses
External
Opportunities
Threats
Internal
Organizational
level
Department/
group level
Individual level
Social
Factors
Strategy
Goals
People
Methods
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

8. Research suggests that
15% of all change efforts are totally successful
½ to 2/3 are failures. Change efforts had minimal impact and little persists over a long period of time.
In my opinion its why managers get paid what they get paid.

9. Lewin’s Change Model Unfreezing 19-5 Changing Refreezing
Creates the motivation to change
Encourages the replacement of old behaviors and attitudes with those desired by management
Entails devising ways to reduce barriers to change
Creates psychological safety
Changing
Provides new information, new behavioral models, or new ways of looking at things
Helps employees learn new concepts or points of view
Role models, mentors, experts, benchmarking results, and training are useful mechanisms to facilitate change
Refreezing
Helps employees integrate the changed behavior or attitude into their normal way of doing things
Positive reinforcement is used to reinforce the desired change
Coaching and modeling help reinforce the stability of change
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

10. Assumptions Underlying Lewin’s Change Model
19-4
Assumptions Underlying Lewin’s Change Model
The change process involves learning something new, as well as discontinuing current attitudes, behaviors, and organizational practices
Change will not occur unless there is motivation to change
People are the hub of all organizational changes
Resistance to change is found even when the goals are highly desirable
Effective change requires reinforcing new behaviors, attitudes, and organizational practices
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

11. Why is change so difficult
Resistance to change. People do not do as they are told to do. Sometimes for very good reasons.

12. Why People Resist Change in the Workplace
19-11
Why People Resist Change in the Workplace
An individuals’ predisposition toward change
Surprise and fear of the unknown
Climate of mistrust
Fear of failure
Loss of status and/or job security
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

13. Why People Resist Change in the Workplace Cont.
19-12
Why People Resist Change in the Workplace Cont.
Peer pressure
Disruption of cultural traditions and/or group relationships
Personality conflicts
Lack of tact and/or poor timing
Nonreinforcing reward systems
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

14. Overcoming Resistance to Change
19-14
Table 19-2
Overcoming Resistance to Change
Approach
Commonly Used in Situations Where:
Advantages
Drawbacks
Can be very time consuming if lots of people are involved
Once persuaded, people will often help with implementation of change
There is a lack of information or inaccurate information & analysis
Education + Communication
Can be very time consuming if participators design an inappropriate change
People who participate will be committed to the implementation of change
The initiators do not have all the information they need to design the change & others have considerable power to resist
Participation + Involvement
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

15. Overcoming Resistance to Change
19-15
Table 19-2 cont.
Overcoming Resistance to Change
Approach
Commonly Used in Situations Where:
Advantages
Drawbacks
Can be very time consuming, expensive and still fail
No other approach works as well with adjustment problems
People are resisting because of adjustment problems
Facilitation + Support
Can be too expensive in may cases if it alerts other to negotiate for compliance
Sometimes it is a relatively easy way to avoid major change
Someone or some group will clearly lose out in a change and where that group has considerable power to resist
Negotiation + Agreement
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.

16. case
application